New Standard Defers Western Australian Exploration Program
New Standard Energy Limited (New Standard) advises that the Southern Canning Joint Venture (SCJV) has agreed to delay drilling of the Brooke North-1 well until late 2015. In line with this the Company plans to defer all of its Canning and Carnarvon Basin drilling activity until 2015.
Unfortunately delays in receiving various stakeholder approvals required for the drilling of the Brooke North-1 well have made it impossible to drill the well prior to this year’s wet season. As a result New Standard, with the support of its SCJV partners (ConocoPhillips (COP) and PetroChina (PCCYF)), has been in discussions with the State Government and the Department of Mines & Petroleum (DMP) to ensure that the delay does not jeopardise the tenure of the SCJV permits.
New Standard is also finalising the renegotiation of the Drilling Services Agreement with Enerdrill to re-program the drilling of its Western Australian wells until 2015. Both companies remain committed to the intended drilling program and have sought to renegotiate timelines rather than terminate the drilling contract, an outcome which is beneficial to both parties. The company is also focused on progressing native title and heritage clearances with Traditional Owners.
New Standard Energy Managing Director Phil Thick said the support received from the DMP and the SCJV partners was very positive. “We are now in a position where we will expect to have extra time to plan and implement our WA drilling program, whilst retaining the upside of our considerable acreage and the support of our global partners. We all remain committed to the huge prospectivity of the Canning Basin,” he said.
“Our recent transactions to secure the Eagle Ford Shale and Cooper Basin acreage was driven by the need to diversify our risk and opportunity. We will continue our new focus on these projects, which we believe will drive shareholder value, whilst we retain our significant positions and the potential upside in the Canning and Carnarvon Basins.”